Citation and commencement

1

This Order may be cited as the Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009 and comes into force on 21st February 2009.

NOTES
Initial Commencement
Specified date

Specified date: 21 February 2009: see above.

Interpretation

2

Interpretation2

In this Order—

“the 2009 Act” means the Banking Act 2009.

NOTES
Initial Commencement
Specified date

Specified date: 21 February 2009: see art 1.

3

Part2General Modifications to Legislation 3

(1)    So far as the enactments set out in the Schedule (“the listed enactments”) apply in relation to liquidation and administration, they apply with the modifications set out in paragraphs (2) to (4).

(2)    The modifications relating to bank insolvency under Part 2 of the 2009 Act are that references to—

(a)    “liquidator” include a reference to a bank liquidator under Part 2 of the 2009 Act;

(b)    “provisional liquidator” include a reference to a provisional bank liquidator under Part 2 of the 2009 Act;

(c)    “liquidation” or “insolvent liquidation” include a reference to bank insolvency under Part 2 of the 2009 Act;

(d)    “winding up” or “winding up by the court” include a reference to bank insolvency under Part 2 of the 2009 Act (and a reference to the “commencement of winding up” in this context is to the commencement of bank insolvency);

(e)    “winding up order” include a reference to a bank insolvency order under Part 2 of the 2009 Act;

(f)    “wound up” include a reference to a bank having been put into bank insolvency under Part 2 of the 2009 Act; and

(g)    “winding up petition” or “petition to wind up” include an application for bank insolvency under Part 2 of the 2009 Act.

(3)    The modifications relating to bank administration under Part 3 of the 2009 Act are that references to—

(a)    “administrator” include a reference to a bank administrator under Part 3 of the 2009 Act;

(b)    “administration” or “insolvent administration” include a reference to a bank administration under Part 3 of the 2009 Act;

(c)    “administration order” include a reference to a bank administration order under Part 3 of the 2009 Act; and

(d)    “provisional liquidator” include a reference to a provisional bank administrator under Part 3 of the 2009 Act.

(4)    The modifications relating to bank insolvency or bank administration under Parts 2 and 3 of the 2009 Act are that references to—

(a)    “insolvency legislation” or “the law of insolvency” include Parts 2 and 3 of the 2009 Act and the provisions of the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989 as applied by those Parts;

(b)    a person acting as an “insolvency practitioner” (as defined in section 388 of the Insolvency Act 1986) include a person acting as a bank liquidator or bank administrator under Parts 2 and 3 of the 2009 Act;

(c)    the provisions of the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989, in the context of bank insolvency or bank administration, shall be read to include those provisions as applied and modified by sections 103 and 145 of the 2009 Act; and

(d)    the provisions of the Insolvency Rules 1986, the Insolvency Rules (Northern Ireland) 1991 and the Insolvency (Scotland) Rules 1986, in the context of bank insolvency or bank administration, shall be read to include those provisions as applied and modified by rules made under section 411(1A) of the Insolvency Act 1986 in relation to bank insolvency, and under section 411(1B) of the Insolvency Act 1986 in relation to bank administration.

NOTES
Initial Commencement
Specified date

Specified date: 21 February 2009: see art 1.

Administrators99 Liquidation99 Administration99 Banks99 Banking & Finance Law99 Insolvency Law99 Financial Institutions99

Finance (No 2) Act 1992

4

Part3Specific Modifications and Amendments to Legislation Finance (No 2) Act 19924

(1)    The following provision of the Finance (No 2) Act 1992 applies with the modification set out in this article.

(2)    Paragraph 2 of Schedule 12 (Banks etc in Compulsory Liquidation) is to be read as if it included the following—

“(3A)    Where the company is a bank (as defined in section 91 of the Banking Act 2009), bank insolvency proceedings shall be taken to have commenced against the bank when the application for a bank insolvency order is made to the court under section 95 of the Banking Act 2009.”.

NOTES
Initial Commencement
Specified date

Specified date: 21 February 2009: see art 1.

Banks96 Financial Institutions96 Banking & Finance Law96

Financial Services and Markets Act 2000

5

Financial Services and Markets Act 20005

(1)    The following provisions of the Financial Services and Markets Act 2000 apply with the modifications set out in this article.

(2)    In section 215 (Rights of the scheme in relevant person's insolvency)—

(a)    in subsection (3), the reference to making an administration application is to be read as including making an application for a bank administration order under section 142 of the 2009 Act, and

(b)    subsection (4) is to be read as if it read the following—

“(4)    In the case of a bank insolvency (as defined in Part 2 of the Banking Act 2009), if the scheme manager decides, pursuant to section 100(6)(d) of that Act, not to remain on the liquidation committee, the scheme manager shall retain the rights it usually enjoys in respect of the winding up of a relevant person under section 371(3) and (4).”.

(3)    In section 355 (Interpretation of Part 24), the definition of “court” is to be read as if “, unless otherwise provided,” were inserted after the word “means”.

(4)    In section 361 (Administrator's duty to report to Authority), references to—

(a)    “administration” are to be read as including a reference to bank administration under Part 3 of the 2009 Act; and

(b)    “the administrator” are to be read as including the bank administrator under Part 3 of the 2009 Act.

(5)    In section 362 (Authority's powers to participate in proceedings)—

(a)    references to “court”—

(i)    in the context of a bank administration under Part 3 of the 2009 Act in England, Wales or Northern Ireland, are to be read as meaning the High Court, and

(ii)    in the context of a bank administration under Part 3 of the 2009 Act in Scotland, are to be read as meaning the Court of Session,

(b)    in subsection (1), the reference to making an administration application is to be read as including making an application for a bank administration order under section 142 of the 2009 Act, and

(c)    in subsections (4) and (4A), references to paragraph 74 of Schedule B1 to the Insolvency Act 1986 and paragraph 75 of Schedule B1 to the Insolvency (Northern Ireland) Order 1989 are to be read as including references to those provisions as applied and modified by section 145 of the 2009 Act.

(6)    In section 370 (Liquidator's duty to report to Authority), references to “liquidator” are to be read as including a reference to a bank liquidator under Part 2 of the 2009 Act.

(7)    In section 375 (Authority's right to apply for an order), references to the provisions of the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989 are to be read as including references to those provisions as applied and modified by section 103 and section 134 of the 2009 Act.

NOTES
Initial Commencement
Specified date

Specified date: 21 February 2009: see art 1.

Financial Services & Activities94 Banks94 Financial Institutions94 Insurance Law94 Banking & Finance Law94

Companies Act 2006

6

Companies Act 20066

(1)    The following provisions of the Companies Act 2006 apply with the modifications set out in this article.

(2)    In section 461 (permitted disclosure of information obtained under compulsory powers)—

(a)    subsection (4)(c) is to be read so as to include the 2009 Act in the list of enactments in that subsection;

(b)    in subsection (4)(g) is to be read so as to include the 2009 Act in the list of enactments in that subsection.

(3)    Any references in Part 35 (the registrar of companies) to the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989 are to be read as including a reference to Parts 2 and 3 of the 2009 Act.

(4)    Where an application is made to the court for—

(a)    a bank insolvency order under Part 2 of the 2009 Act,

(b)    the appointment of a provisional bank liquidator under section 135 of the Insolvency Act 1986 or article 115 of the Insolvency (Northern Ireland) Order 1989, as applied by section 103 of the 2009 Act,

(c)    a bank administration order under Part 3 of the 2009 Act, or

(d)    the appointment of a provisional bank administrator under section 135 of the Insolvency Act 1986 or article 115 of the Insolvency (Northern Ireland) Order 1989, as applied by section 145 of the 2009 Act,

sections 1139 and 1140 (service of documents on company, directors, secretaries and others) have effect subject to the provisions for service set out in Parts 2 or 3 of the 2009 Act and in rules made under section 411 of the Insolvency Act 1986 in respect of those Parts.

(5)    In Part 2 of Schedule 2 (Specified Descriptions of Disclosures)—

(a)    paragraph 25 is to be read so as to include the 2009 Act in the list of enactments in that paragraph, and

(b)    paragraph 46 is to be read so as to include the 2009 Act in the list of enactments in that paragraph.

(6)    In Part 2 of Schedule 11A (Specified Descriptions of Disclosures)—

(a)    paragraph 30 is to be read so as to include the 2009 Act in the list of enactments in that paragraph, and

(b)    paragraph 52 is to be read so as to include the 2009 Act in the list of enactments in that paragraph.

NOTES
Initial Commencement
Specified date

Specified date: 21 February 2009: see art 1.

Banks95 Financial Institutions95 Company Law & Business Entities94 Companies & Corporate Bodies94 Banking & Finance Law95

Dormant Bank and Building Society Accounts Act 2008

7

Dormant Bank and Building Society Accounts Act 20087

(1)    This article applies to a reclaim fund established under the Dormant Bank and Building Society Accounts Act 2008 if, under sections 1 or 2 of that Act, the balance of a customer's dormant account is transferred into that reclaim fund from a bank which is a bank within the meaning of section 91 of the 2009 Act.

(2)    Where that reclaim fund is unable, or likely to be unable, to satisfy a claim against it, the fact that it ceases to be authorised does not prevent the operation of the Financial Services Compensation Scheme under section 213 of the Financial Services and Markets Act 2000 in respect of it; and for that purpose, the reclaim fund is a relevant person within the meaning of section 213(9), despite the lapse of authorisation.

NOTES
Initial Commencement
Specified date

Specified date: 21 February 2009: see art 1.

Pension Protection Fund (Entry Rules) Regulations 2005

8

Pension Protection Fund (Entry Rules) Regulations 20058

(1)    The Pension Protection Fund (Entry Rules) Regulations 2005 are amended as follows.

(2)    In regulation 6 (Circumstances in which insolvency proceedings in relation to the employer are stayed or come to an end), after paragraph (1)(a)(v) insert—

“(vi)    where the company is a bank (as defined in section 91 of the Banking Act 2009), the bank insolvency procedure is stayed under section 130 of the Insolvency Act 1986 (as applied by section 103 of the Banking Act 2009), or the bank insolvency order is rescinded or discharged, except in circumstances where the court has made an administration order in accordance with section 114 of the Banking Act 2009.”.

NOTES
Initial Commencement
Specified date

Specified date: 21 February 2009: see art 1.

Banks93 Financial Institutions93 Banking & Finance Law93

Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005

9

Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 20059

(1)    The Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005 are amended as follows.

(2)    In regulation 6 (Circumstances in which insolvency proceedings in relation to the employer are stayed or come to an end), after paragraph (1)(a)(v) insert—

“(vi)    where the company is a bank (as defined in section 91 of the Banking Act 2009), the bank insolvency procedure is stayed under article 110 of the Insolvency (Northern Ireland) Order 1989 (as applied by section 103 of the Banking Act 2009), or the bank insolvency order is rescinded or discharged, except in circumstances where the court has made an administration order in accordance with section 114 of the Banking Act 2009.”.

NOTES
Initial Commencement
Specified date

Specified date: 21 February 2009: see art 1.

Banks93 Financial Institutions93 Banking & Finance Law93

Signature

Dave Watts

Steve McCabe

Two of the Lords Commissioners of Her Majesty's Treasury

19th February 2009

SCHEDULE Legislation Subject to the General Modifications in Part 2

SCHEDULE  Legislation Subject to the General Modifications in Part 2 Article 3(1)

Primary Legislation

Taxes Management Act 1970

Prescription and Limitation (Scotland) Act 1973

Companies Act 1985

Companies (Northern Ireland) Order 1986

Debtors (Scotland) Act 1987

Income and Corporation Taxes Act 1988

Companies Act 1989

Companies (No 2) (Northern Ireland) Order 1990

Taxation of Chargeable Gains Act 1992

Finance (No 2) Act 1992

Pension Schemes Act 1993

Pension Schemes (Northern Ireland) Act 1993

Pensions Act 1995

Pensions (Northern Ireland) Order 1995

Proceeds of Crime (Scotland) Act 1995

Finance Act 1996

Employment Rights Act 1996

Employment Rights (Northern Ireland) Order 1996

Terrorism Act 2000

Finance Act 2000

International Criminal Court Act 2001

International Criminal Court (Scotland) Act 2001

Finance Act 2002

Proceeds of Crime Act 2002

Debt Arrangement and Attachment (Scotland) Act 2002

Finance Act 2003

Pensions Act 2004

Pensions (Northern Ireland) Order 2005

Companies Act 2006

Bankruptcy and Diligence (Scotland) Act 2007

Finance Act 2008

Dormant Bank and Building Society Accounts Act 2008

Secondary Legislation

Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules 1987

Financial Markets and Insolvency Regulations 1991

Financial Markets and Insolvency Regulations (Northern Ireland) 1991

Insolvency Regulations 1994

Non-Domestic Rating (Unoccupied Property) (Scotland) Regulations 1994

Insolvent Companies (Reports on Conduct of Directors) Rules 1996

Financial Markets and Insolvency Regulations 1996

Financial Markets and Insolvency Regulations (Northern Ireland) 1996

Individual Savings Account Regulations 1998

Corporation Tax (Simplified Arrangements for Group Relief) Regulations 1999

Financial Markets and Insolvency (Settlement Finality) Regulations 1999

Financial Collateral Arrangements (No 2) Regulations 2003

Insolvency Practitioners and Insolvency Services Account (Fees) Order 2003

Insolvent Companies (Reports on Conduct of Directors) Rules (Northern Ireland) 2003

Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules (Northern Ireland) 2003

Land Registration Rules 2003

Credit Institutions (Reorganisation and Winding Up) Regulations 2004

Insolvency Practitioners Regulations 2005

Pension Protection Fund (Entry Rules) Regulations 2005

Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005

Gender Recognition (Disclosure of Information) (England, Wales and Northern Ireland) Order 2005

Gender Recognition (Disclosure of Information) (Scotland) Order 2005

Financial Assistance Scheme Regulations 2005

Insolvency Practitioners Regulations (Northern Ireland) 2006

Insolvency Practitioners and Insolvency Account (Fees) Order (Northern Ireland) 2006

Land Registration (Scotland) Rules 2006

Companies (Cross-Border Mergers) Regulations 2007

Regulated Covered Bonds Regulations 2008

NOTES
Initial Commencement
Specified date

Specified date: 21 February 2009: see art 1.

International Law96 Land Registration Proceedings & Adjudication96 Financial & Business Offences94 Company Law & Business Entities94 Companies & Corporate Bodies94 International Institutions & Organisations96 Criminal Law & Disposition of Offenders94 Registered Land96 Director Disqualification98 Real Property Law96 Corporation Tax99 Disqualification Procedure98 Tax Law99 Property (Scots Law)96 Directors94 Insolvency Law98

EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Order)

This Order makes modifications and amendments to certain Acts and Statutory Instruments as a consequence of Parts 2 (bank insolvency) and 3 (bank administration) of the Banking Act 2009 (c 1) (“the 2009 Act”).

Part 1 concerns citation, commencement and interpretation.

Part 2 sets out a number of general modifications, which apply to the primary and secondary legislation set out in the Schedule to this Order. It provides that so far as the enactments in the Schedule apply to liquidation or administration, they apply with the modifications in Part 2, in the case of a bank insolvency or administration under Parts 2 or 3 of the 2009 Act.

Part 3 sets out certain primary legislation that, in the context of a bank insolvency or a bank administration, are to be read with modifications. It also sets out a number of specific textual amendments to secondary legislation.

The Schedule lists the Acts and Statutory Instruments that are subject to the general modifications set out in Part 2.

An impact assessment of the effect of the 2009 Act is available on HM Treasury's website (www.hm-treasury.gov.uk).

Banks96 Financial Institutions96 Banking & Finance Law96